NFTs, which have become an investment for some and a collection tool for others, are, in short, unchangeable, unique tokens. Art collection, investment vehicle, virality… People buy NFTs for different reasons. NFTs can be shaped with different purposes and perspectives, and can be positioned as a tool for an end. Let’s examine together the various projects created from this perspective.
What is NFT?
On Wikipedia, NFT (non-fungible token) is defined as a unit of data stored on a digital ledger called a blockchain that certifies that a digital asset is unique and therefore not interchangeable. Take any blockchain platform, an NFT on that platform is a singular virtual token. Blockchain mathematically guarantees that the token cannot be duplicated and will never disappear from the blockchain. Therefore, the unique identity and ownership of an NFT can be verified by the blockchain ledger. In this respect, it differs from fungible tokens and cryptocurrencies. There are millions of cryptocurrencies and fungible tokens, and they are all the same.
NFT data units can be associated with visual or audio digital files. For example, a digital copy of a produced work of art, property rights, production date and all information desired to be added to a blockchain are recorded and locked. If this unique unit of data goes up for sale and finds a buyer, it is exchanged for a currency recognized by the type of blockchain produced. Ownership of the chain is transferred to the person who purchases it. You can craft an NFT yourself or buy it from others for a fee.
Utility NFTs
When talking about NFTs, we can’t help but mention Utility NFTs, which are equipped with a direct application for real-world use. ‘Utility NFTs’ are based on perpetual membership benefits and exclusive amenities for real-world experiences or access to closed, premium content. These digital assets are a type of “advantage NFT” that goes one step beyond the average smart contract token, offering benefits such as redeemable rewards, memberships, access to events, and passive income opportunities. Utility NFT assets offer flexibility to their users and creators. Projects can be supported with smart contracts, eliminating the need for a third party.
It is possible to see Utility NFT applications in different areas. Gaming world, fashion, sports… For example, the racing game World of Freight, which has a collection of 10,000 NFTs, wants to create Suplain, the first NFT-supported supply chain infrastructure and trade finance protocol. All NFTs, which include land, water, air and even space travel vehicles, can be used to upgrade and personalize vehicles in the game. As another example, we can show LinksDao. LinksDao is a decentralized organization that aims to create a crypto-based golf club. This club can only be accessed through LinksDAO NFT holders. One of these names is NBA star Steph Curry!
NFTs in Creating Social Responsibility and Impact
Beyond being an internet phenomenon, NFTs can play a role in solving complex problems. Emerging technologies such as NFT; It can enable the development of different solutions when addressing social and environmental problems in various fields such as youth, climate change and humanitarian aid. Organizations, donors, and communities can be empowered through NFTs.
Recent developments such as crypto philanthropy, social and environmental impact-focused NFTs, the growth of KlimaDAO and the proliferation of the decentralized science (DeSci) movement, and crypto-based aid delivery to those affected by the war in Ukraine have completely transformed impact and benefit-focused work. Some examples of projects include Beeing Hope NFT and Buy My Cancer projects. The NFT project Beeing Hope NFT, realized with the support of 28 artists, was created for the benefit of the bee population damaged by the forest fires in the Mediterranean region of Turkey in recent years. The Buy My Cancer project, on the other hand, is offered as an NFT that enables the images of cancer patients’ cells to be converted into NFTs and sold, and the resulting revenue to be used for the patient’s treatment. There is also a marketplace for impact NFTs, Doingud. For every purchase made on the platform, a minimum of 5% revenue per sale is allocated to a predetermined social impact organization chosen by the content creator.
Investments in these technologies and the entrepreneurial ecosystem around them have also been revitalized, impressed by Web3’s potential to solve the problems of our world. In accordance with this potential UNICEF Startup Fud created an equity-free cryptocurrency investment program to provide early-stage seed funding and mentoring to nonprofit technology startups. The ReFi movement showed us that Web3 could be another way to solve global problems, touching on social impact as well as finance.
NFTs also enable the formation of a community based on solidarity among NFT owners. As an example of a strong community, we can point to the “Women Rise” community, led by Pakistani-born Maliha Abidi. This project supports female artists, activists, software developers and scientists interested in blockchain technology; It aims to increase women’s participation in crypto.
As an example in the field of education from Turkey, it is possible to mention the “Girls Enlightening Life” NFT Project. NFT designs, which express the power of women in areas such as electricity, air conditioning, combi boiler, building installation and air conditioning, mapping, land registry, wooden building systems and welding, which are identified with men, both offer a work towards gender equality; It also contributes to educational processes by using the income it will obtain from the sale of its NFT collection for the education and training of female students in vocational high schools. The Kite project supports students in achieving their dreams by bringing NFT revenues to students through NFT platforms and NFT auctions.
A Question That Gathers People Around: Why Are NFTs Purchased?
Social media and related tools help create assets that increase in value over time. A common enthusiasm for a topic or conversation is shared among people. A conversation can create a value change, and these created values can turn into larger formations by transferring them to communities. NFTs are also a talked about value (conversational currency).
The fact that NFT has not fallen off the agenda lately is due to its success in keeping this element of curiosity at the highest level. Such a curious value increases the prestige and attention of the person by making its owner talked about. NFT owners can also turn to this area to increase their awareness in the virtual and real world and to be talked about. This prestige can lead people to be invited to virtual and physical experiences.
So, can’t NFTs be owned by taking a screenshot instead of buying them? Here it is necessary to return to the definition of NFT again. The fact that the produced commodities have a unique code on the blockchain turns them into a special product. The point here is to own the original commodity. For people who are looking for unique value, the uniqueness of NFTs makes them want to buy them. When we say original, we should also underline that there is not just one NFT, there can be thirty copies of it. Still, these NFTs attract attention with their limited number. This phenomenon of ownership, which may be a sign of belonging to a community for some and a sign of status for others, pushes people to become the owners of the original commodity. Another possible perspective is that NFT contains commodities that can create collectibles. Especially in the field of art, blockchain’s ability to provide trust in works of art attracts collectors to NFTs and also provides accessibility between art and the individual. The buyer who is looking for an original work of art and wants to collect it; Thanks to its accessibility, it started to prefer NFTs.
Accessibility to valuable artworks has long been controlled by intermediaries, creating a divide between artists and buyers who may not want to engage with traditional intermediaries such as auction houses or galleries. However, the emergence of NFTs is expanding opportunities for artists to secure sales for their work by allowing them to sell directly to the buyer market. NFTs require little to no human intervention in NFT sales, as they have built-in smart contracts that enable the artist and buyer to agree to the terms of sale and possible resale of the digital artwork, and these contracts are self-executing. Some commentators have defended this phenomenon as the “democratization of art.” This phenomenon is seen not only as a transition from lack of transparency to complete transparency in art sales transactions, but also as free trade in art on the open market.
ReFi Türkiye Podcast 🎧️
🌱 Within the scope of the ReFi Turkey program, our podcast series with pioneers who think and build on Web3 is online. Stay tuned for new episodes!
You can listen to the episodes about the intersection of web technologies and the impact ecosystem on Spotify, Apple Podcasts, Soundcloud and Spreaker. You can also buy NFTs that we prepared specifically for podcast episodes with the code you will hear in the episodes!
In this episode of the ReFi Turkey Podcast series, our guest is KPMG Turkey Partner, Data, Analytics and Digital Leader, Technology Sector Leader, KPMG Lighthouse Turkey Coordinator Gökhan Mataracı. Based on the Society 5.0 philosophy, Mataracı discussed digitalization processes, social benefit and impact-oriented use of technology and its design as an experience, and also presented examples through concepts such as net zero, Sustainable Development Tools and metaverse.
Movie Recommendation
Anthony Hopkins stars in the world’s first NFT movie, Zero Contact, which was released on the Vuele platform on September 24, 2021. The production, produced in 17 different countries during the pandemic period, focuses on the dangers of high technology in a virtual world. In the promotional articles for the movie, “The NFT of this movie also includes the world’s first interactive sophisticated puzzle. This interactive puzzle updates in real time as it is solved, ultimately pointing to a prize hidden in the Zero Contact universe. In other words, it’s like a digital treasure hunt!” and “There is no more appropriate name for the film for a project created and directed virtually via Zoom: Zero contact!” reviews stand out.